Crypto market bloodbath! Bitcoin, Ethereum tank after Trump imposes 100% tariff on Chinese imports

By Admin

11 Oct, 2025

The global crypto market witnessed a massive meltdown on October 10, 2025, following U.S. President Donald Trump’s announcement of a 100% tariff on all “critical software” imports from China. The move, aimed at countering Beijing’s newly announced export restrictions on rare earth minerals, triggered panic across global financial markets sending major cryptocurrencies into a sharp decline.

Bitcoin and Ethereum Plunge

Bitcoin, the world’s largest cryptocurrency, fell over 8% to $111,000 levels, while Ethereum nosedived more than 15%, slipping below the $3,800 mark. The drop marks one of the steepest single-day declines this quarter, shaking investor sentiment across digital asset markets.

At 6:10 am, Bitcoin was down 7.60% to $112,592.31, while Ethereum plunged 12.24% to $3,845.92, according to CoinMarketCap data. Analysts reported $9.5 billion in liquidations after Bitcoin failed to hold the crucial $120,000 support level.

Top 5 Tokens: Red Across the Board

As of 6:45 am, the top cryptocurrencies painted a grim picture:

• Bitcoin (BTC): Down 8.40% to $111,841.14, market cap down 8.12% to $2.23 trillion
  
  

• Ethereum (ETH): Down 15.62% to $3,792.31, market cap down 13.81% to $456.97 billion
  
  

• Tether (USDT): Down 0.1% to $1, market cap down 0.28% to $178.97 billion
  
  

• Binance Coin (BNB): Down 6.6% to $1,094.09, market cap down 12.91% to $152.27 billion
  
  

• XRP: Down a staggering 22.85% to $2.33, market cap down 16.31% to $140.19 billion
  
  

The total global crypto market capitalization slid significantly as investors rushed to exit riskier assets amid escalating U.S.–China trade tensions.

Why Did the Crypto Market Crash?

The sharp sell-off came hours after Donald Trump’s post on Truth Social, where he expressed outrage over China’s trade stance.

Trump stated:

“It has just been learned that China has taken an extraordinarily aggressive position on Trade in sending an extremely hostile letter to the World… This affects ALL Countries, without exception, and was obviously a plan devised by them years ago. It is absolutely unheard of in International Trade, and a moral disgrace in dealing with other Nations.”

The former U.S. President went on to declare:

“Starting November 1st, 2025 (or sooner), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying. Also, we will impose Export Controls on any and all critical software.”

The tough rhetoric and drastic policy escalation rattled global investors, sparking a risk-off sentiment across both traditional and digital markets.

Market Reactions and Investor Sentiment

Crypto analysts believe the move could further strain the U.S.–China tech supply chain, affecting everything from semiconductor imports to blockchain software development. Traders are now bracing for extended volatility, with some warning that Bitcoin could retest the $100,000 mark if macro uncertainty deepens.

The broader market outlook remains fragile as investors weigh the potential impact of the tariff war escalation on the global technology and cryptocurrency ecosystems.

Conclusion: Turbulence Ahead for Crypto Markets

With Trump’s aggressive trade stance and China’s countermeasures on rare earth exports, market volatility is likely to persist. Crypto investors are advised to remain cautious, as the political and economic aftershocks of this U.S.–China confrontation could continue to influence digital asset valuations in the coming weeks.

📉 The crypto market is bleeding   and the trade war just reopened old wounds.